The Solana price is trading at $146 with a bearish bias as of 4:30 am EST. SOL has been sealed in a downtrend over the last week, with 12% monthly losses. Market participants are expecting a sustained uptrend for the smart contract token as it trades in a highly bullish chart pattern in the daily timeframe.
Solana bulls seek a return to areas above $180
Solana has had an impressive run in 2024, posting more than 60% gains from the May. 1 low of $118 to set a swing high at $188 on May 21. This was followed by a steep fall that saw the token lose 35% of its value to seek solace from the buyer congestion zone at $120 before sharply recovering to the current.
This price action led to the appearance of a V-shaped recovery chart pattern on the four-hour chart, as shown below. This bullish technical formation has seen the SOL price flip two resistance levels into support, the 200-day exponential moving average (EMA) at $130 and the $140 psychological level.
This support-resistance flip suggests a change in crypto market sentiment from bearish to bullish, with the previous resistance level capping the price movement, becoming a new support level from which the price may seek defense.
Traders may consider entering long positions when the price successfully breaches the resistance zone between $148 and $150. If they are successful, the price may rise to the neckline of the prevailing chart pattern at $188. Such a move would represent a 39.4% uptick from the current price.
TradingView Chart: SOL/USD
On the other hand, a rejection from the current level could see Solana price drop below the $140 psychological support. If this level fails to hold as support, the altcoin could slump to retest the support provided by the $130 buyer congestion zone where the 200-day EMA currently sits.
In highly bearish cases, the SOL price could descend to the $122 swing low, which would invalidate the bullish thesis.
